Taiwan: Former Water chairman on corruption charges

2 September 2014
Former chairman of Taiwan Water Corp (TWC), Hsu Hsiang-kun, was charged on Monday with corruption, which involved a bribe of NT$5 million (US$167,500) to help secure a contract.

Kintech Technology Co. of Taichung won the bid for a NT$900 million (US$30 million) contract in April 2002 to install advanced water purification equipment at two TWC water treatment plants in the central city. The equipment installed at both plants failed to produce water of required standard in 2003.
After intense negotiations, TWC agreed to give one more year to rectify the equipment. A supplementary contract was signed in 2004. At the end of the one year the equipment failed to produce water of acceptable quality.

This prompted TWC to send a legal notice to Kintech with a view to terminate the contract.

At this time Hsu was appointed chairman of TWC. It was alleged that a senior executive of Kintech to seek another chance to complete the project. NT$5 million (US$167,500) changed hands. Hsu directed his subordinates to negotiate with Kintech and help settle the disputes associated with the contract. After protracted negotiations TWC agreed to give an extension of one year to Kintech to compete the project. This happened in 2006. The water purification installations eventually passed the quality test. It is not known whether Hsu influenced in the relaxation of the water tests.